Nickel Comprehensive Exploration Protocol

COMPREHENSIVE EXPLORATION PROTOCOL
FOR NICKEL DEPOSIT
GEOLOGY AND MINERAL RESOURCES
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By Yulindra Christiawan
1. TABLE OF CONTENTS
1. TABLE OF CONTENTS ................................................................................................ 2
2. INTRODUCTION........................................................................................................... 3
3. MAPPING ..................................................................................................................... 3
3.1 Base Map ....................................................................................................................... 4
3.2 Geological Mapping........................................................................................................ 4
3.3 Map Standards ............................................................................................................... 5
4. DRILLING ..................................................................................................................... 8
5. TEST PIT .................................................................................................................... 14
6. GROUND PENETRATING RADAR ............................................................................ 16
7. SURVEYING ............................................................................................................... 17
8. SAMPLING ................................................................................................................. 20
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9. ASSAYING.................................................................................................................. 21
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9.1 Method ........................................................................................................................ 21
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9.2 In rist ert
Assay Data Quality Analysis .................................................................................... 22
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10. DATA .......................................................................................................................... 22
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11. RESOURCE ESTIMATION ......................................................................................... 24
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12. REPORTING............................................................................................................... 27
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13. HEALTH, SAFETY AND ENVIRONMENTAL COMMUNITY (HSEC) .......................... 28

14. SUMMARY OF EXPLORATION PROTOCOL ............................................................. 29
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15. APPENDICES ............................................................................................................. 31

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14.1 Appendix A: Vertical profile Log Sheet ..................................................................... 31

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14.2 Appendix B: Sample weigh Recovery Sheet ............................................................ 32

14.3 Appendix C: Sample Preparation Procedure ........................................................... 33
14.4 Appendix D: Sample Preparation Sheet .................................................................. 34
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14.5 Appendix E: Sample Submission Sheet ................................................................... 35

14.6 Appendix F: Analytical Method ................................................................................ 36
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14.7 Appendix G: BULK DENSITY TEST ........................................................................ 37

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Nickel Comprehensive Exploration 2/13

Protocolv2
2. INTRODUCTION
This protocol is the guidance to technical exploration team who responsible to commence the
comprehensive exploration work and feasibility study of particular nickel potential area. This
document details exploration protocols to be implemented and followed in the conduct of the
Client Institution Comprehensive Exploration program.
The main objective is;
To obtain accurate and sufficient technical data to comply with JORC CODE
2004 or NI 43 101 (Canadian Institute of Mining) in order to establish
resource estimation and other technical works in mining phase,
To mitigate the errors or deviation that may be happened during data collection
or compilation,
To have a safe data storage.
The comprehensive exploration work is including general geological mapping, detail
geological mapping, test pit or trenching, regional drilling, infill drilling, geotechnical and geo-
hydrology drilling (when necessary), detail topography work, sampling method and handling,
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geochemical analysis, quality control quality assurance (QA/QC) and geophysical work.
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This protocol should be implemented consistently to compile accurate technical data sufficient
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to achieve high confident level in resource estimation, reserve value, mine model and mine
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schedule. Geologist or field supervisor takes a full responsibility in this protocol
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implementation in day to day activities.
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The protocols have been derived from experience gained during the century. Other sources of
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information are the AUSIMM Field Geologists Manual (Monograph 9) and the AUSIMM
(competent person) publication Mineral Resource and Ore Reserve Estimation (Monograph
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23) as well as NI 43 verse 101.

The following systematic procedures should be adhered to at all times. If one stage is not
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followed then the exploration process is incomplete and this will reflect directly on the
confidence level that can be applied during the resource estimation and reporting stages.
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3. MAPPING
The general principles will be that mapping:
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Is always done by a geologist.

Identifies surficial characteristics, bedrock geology, laterite, saprolite and structure.
Describes terrain in terms of topography i.e. elevation, slope, "grain", drainage etc
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Is used to create digital base maps.

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Previous mapping by the Mines and Geosciences Bureau can be used in the
compilation of the base map
The objective is;
To determine general geological domains such as rock unit, structures, morphology as
well as allocate its distribution and boundary on the area,
To observe type structural geology, its intensity and distribution of the area from the
outcrops or satellite imagery interpretation,
To allocate mineralization zone from the outcrops,
To collect some representative samples in sufficient weight for geochemical analysis
(XRF),
To establish further work recommendation as the outcome of this stage.

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The desk top study is necessary to be done just before start the works by compiling previous
geological study, research or commercial report, satellite imagery and geophysical image
interpretation (when available) result.
The tools and equipments is General Geological base map and Drainage Pattern Map in
1:25,000 scale, GPS, grain comparator, geological compass, G pick, proper note book (water
resistance when necessary), sampling tools (crowbar and etc.).
The field observation works focus in out crop mapping and descriptions by traversing creeks
or roads, visiting anomaly area (vegetation anomaly or unstable area (land slides), test pits,
trench and finding mineralization site information from the local people.
Small scale manual excavating work may be required to obtain more detail geological data
such test pitting or trenching. This work should minimize the environmental disturbance impact
and consider to safety aware.
3.1 Base Map

A scale of 1:25,000 will be used for the Project base map and 1: 5,000 for individual deposit or
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prospected areas. The following details should be incorporated:
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Geology
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Topography
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Tenement boundaries
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Environmentally prohibited, restricted or sensitive areas
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Environment damage.
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Mined-out areas
Previous exploration activity (test pits, drill holes, trenches etc.)
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Infrastructure
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Vegetation
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Structure
Planning (e.g. drill hole sites)
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3.2 Geological Mapping

Detailed mapping can be undertaken by the geologist walking each of the grid lines, a long
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road access, creeks and the map should be updated at regular intervals during the drilling
program. All existing features such as creeks/tributaries, ridges/spurs, erosional
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windows/gullies, road-cuttings and trails should be mapped.

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Equipment needed for orientation in the field can include aerial photographs, compass and
tape, topography map and GPS.
In addition it is essential that all saprolite/bedrock outcrops be recorded along with the
boundaries of the resource (limonite and saprolite). Current topographic and geological maps
can be used to assist in the mapping process.
Outcrop logging
Ensure outcrop is clean and free for covered waste material or vegetation, so the object can
be observed clearly.

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All individual lithology, alteration and mineralization shall be described and record in properly
from of company or contractor that contains following information;
Project Name :
Date of Observation :
Geologist Name :
Point of Observation No. :
Coordinate in UTM (WGS 84): (X,Y,Z)
NB; shoot the camera on the outcrops.
Logging Codes
The following standard codes for logging have been modified to classify the saprolite
according to grit/rock content:
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Symbols Description Weath
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LF Red-brown limonite (overburden) 5F
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LA Yellow limonite (without Mn staining or veins) 5F
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LB In rist ert
Yellow limonite (with Mn staining or veins) 5
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TM Transition Material 4-5
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Saprolite (gritty clay with <10% boulders of weathered 4
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SAP bedrock) 3
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Rocky saprolite (with 10 to 50% boulders of weathered

R_SAP bedrock) 2
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S_ROCK Saprolitic rock (with 50-90% bedrock)
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SD Serpentinized Dunite 0
SS Serpentinite 0
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Hz Harzburgite 0
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Structure outcrops description:

It contains type of structural geology, orientation, mineralization, displacement direction.
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All interest outcrops should have a clearly identity pegging, Place a strong wooden stick on
the top of the outcrop. Write the observation number on the stick. Place the colour flag tape on
it when necessary.
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This procedure is also valid for test pitting or trenching work.

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The pegging will be a good guidance for topography surveyor to tie the geology observation
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points.
3.3 Map Standards

Implementation of standardized formats, including symbols and essential cartographic
elements should be done in order to make maps comprehensive and straightforward. The
following symbols and colour fills are suggested:

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Lithology
Rock Type/ Mineralogy Symbol Colour

Harzburgite LLLLL Grey
Dunite Blue
Serpentinite Colour (black, green

Light green, white
Basalt Red
Laterite zone Yellow

Saprolite zone Green
Qb Quartz box works
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Ga Garierite
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Gp Geothitic pisolite
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Mh Maghemite lag
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Sil/stwk Silica stockworks
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Breccia Differentiate weathering

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in fracture and
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weathering of the clash

Differentiate weathering
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in centre of clash and

perimeter
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Differentiate weathering
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of serpentine/hairly silica
in clash
Serpentine is important
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to record colour and

weathering degree
Silica/carbonaceous,
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important to record
hardness, texture
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(vuggy, massive, comb

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teeth)
Serpentine; (V) Vein (impacted due
to hydrothermal vein),
1. Antigotite
(B) Basal 70 90%
2. Chrysotile
(N) Normal 50 70%
3. Lizardite
(L) Low 10 50 %
(X) Non serp 0 10%

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Rock contain percentage

The geologist shall determine the rock percent within individual outcrop and recorded it. The
rock contain percentage has a close relationship with density of the ore.
All following rock % estimates base on foot traverse observation are from as dotted line;
< 40% rock,
40 60 % rock,
60% rock
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Rock % estimation along roads/tracks observation is showed solid lines;
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Rock < 10%
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Rock 10 19%
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Rock 20 29%
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Rock 30 39%
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Rock 40 49%
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Rock 50 59%
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Rock 60 69%
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Rock 70 79%
Rock 80 89%
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Rock 90 100%
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Lithological boundaries
Line Type
Inferred _._._._._._ Observed _________
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Structures
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Faults Joints
Shoreline
Including major and minor tributaries - Dark blue in colour
Archiving of Data

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All raw drawings should be stored as mxd files. Final maps can be stored as shp (arc gis File)
or pdf (Abode File). Associated tables can be archived as DBF, ASCI text or Access MDB
files.
The out put

The outcome of this work is;
Surface traverse and Situation Map containing the observations points and geological
structure elements. The map is generated in 1 : 10,000 or 1 : 5000 scales,
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Figure 3.1 Geological map

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4. DRILLING
By conveying the drilling campaign, project can effectively figure the nickel occurrence,
geochemical and its distribution out and obtain nickel geology diversity.
General equipment specification;
Rig unit is man potable rig and able to perform vertical drilling. The engine is strong enough to
drill up to 50 meter in HQ size. The triple tube core barrel is considered to be used to avoid
contamination from the hole wall. The core recovery minimum is 95% on mineralization zone
and 85% in basement rock or non mineralization zone.

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In daily activity the drilling supervisor shall do pre start daily check list to mitigate engine
failure, leaking hoist or seal, last spare part and to maximize the penetration rate and good
core recovery.
The supervisor and the geologist should agree the 0 meter point before the drilling is
commenced
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Table 4.1, Daily pre start check list

Bore Hole Logging
Bore hole site shall be recorded in properly from of company that contains following
information;
Project Name :
Date of Observation :
Geologist Name :
Bore Hole No. :

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Coordinate in UTM (WGS 84): (X,Y,Z)

Barrel Type :
Core Size :
Inclination degree : .o
Determining drilling depth is below;
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Figure 4.1, determine a drilling depth

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The run meter and core recovery shall be recorded accurately.
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Nickel Converhensive Exploration 11/13

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CONVERHENSIVE EXPLORATION PROTOCOL
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Table 4.2, Run Recovery table

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Figure 4.2, Full core, core loss, pick up and stick up chase
Core Logging Codes
according to grit/rock content:

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Symbols Description Weath

LB Yellow limonite (with Mn staining or veins) 5
SAP bedrock) 3
R_SAP bedrock) 2
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SS Serpentinite 0
Hz Harzburgite 0
Additional Comments
Other features / characteristics to be taken into consideration when logging core include:
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- texture - friability
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- grain size - fracturing / RQD
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- Colour - Minerals visible
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Core handling,
1. Ensure the incoming core from the barrel clean from contamination (wall cutting or
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organic or drilling mud),

2. Place the core on proper tube or core splitter with care (do not damage the core),
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3. Shoot the camera on the core,

4. Describe it immediately.
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Figure4.3, Core Handling

Photography
Photograph of core box, using colour print film/digital camera.
Each photograph should include a header board showing project name, hole number and
from and to depth.
Sampling Method
1. Clean the core from the other materials,
2. Record the range depth of the sample accurately,
3. Determine the type of mineralization, orientation, geometry and its distribution,
4. Determine the type of nickel ore and its boundary
5. Ensure the core is free from contamination material (organic or inorganic),
6. Sampling spacing will based on ore type change, mineralization change or lithology
change,
7. 1 meters sample spacing is consider +- 0.25 m ,
8. Pack sample (weight 1 kg per sample) in 2 kg plastic bags and complete it with a
unique sample number.
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NB: one sample number can not be use to two different samples.
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Systematic sampling number,
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Write the Hole number alphabet code in front and number will follow behind.
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Example:
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There are three samples are collected from hole number BH01. Then the sample number
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Then the sample number is BH01001, BH02002 and so on.

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In the purpose of quality assurance and quality control of analytical process of laboratory a
duplicate sample is considered to send every 20 samples submission. Selected sample will be
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collected in two packages one is original and one duplicate for 20 samples. And send a
standard sample every 50 samples when necessary.
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5. TEST PIT
Test Pit will initially be located by survey teams, under the supervision of the project geologist,
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using DGPS, as well as total station or compass and measuring tape and using holes/pits
collar excavated during the previous exploration program as reference points. At regular
intervals these sites will be accurately surveyed using a DGPS.
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Test pit site is located on the Southern part of existing hole/pit in particular distance. Test pit
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will be excavated in 1.5 x 1.5 m square meter. Test pit will be carried out using manual
excavated tools or mini excavator. The dept of test pit is based on proximate depth
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interpretation is from neighbour hole.

It is essential that all sides wall of pit have a fresh surfaces and be logged carefully by a
geologist so that he gains an intimate knowledge of all geological aspects of the deposit.
Experienced geologist carries out photography for each vertical profile and then sample
representative geological structures.
The following guidelines should be adhered to in the detailed logging of each of pit walls:
Wall Logging Codes

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according to grit/rock content
Symbols Description Wth

LB Yellow limonite (with Mn staining or veins) 5
SAP bedrock) 3
R_SAP bedrock) 2
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SS Serpentinite 0
Hz Harzburgite 0
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In addition the size of boulders in each sample interval should be recorded as follows to aid in
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the analysis of rock distribution and screening in the saprolite (and limonite where boulders
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rarely occur):
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Code Description
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1 <20cm
2 20 50cm (will be screened at a grizzly)
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3 >50cm (will be left in the pit)

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Weathering Scale
The standard weathering scale is as follows:
Lithology Classification Characteristics
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Fresh Rock 0 Black / green / light grey, unweathered, dense & hard
Saprolite 1 Black / brown, slightly weathered, discoloured, still hard
2 Brown / gray
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3 Pink / brown / green

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Pink / brown / green, friable, relatively low density with some remnant
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textures.
5 Brown, yellow / red, pink / green-gray, very soft, original textures still visible
Yellow red, very soft soil-like, very low density to compact, mud-like
Limonite 5F
texture
Ferricrete 6 Red-black, hard, includes pisolites
Combinations of the various weathering stages could be used i.e., 2/3, 3/4, 2-5 or 0-3. The
first number in double-digit references indicates the predominant weathering stage, but the
numbers separated by a hyphen include all intermediate-weathering stages.

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Photography
Photograph of all sides wall of pits, using colour print film/digital camera.
Each photograph should include a header board showing project name, pit number, wall side
number, and from and to wall depth.
Field Supervision
Field staff will be required to:

Supervise sampling for maximized weight recovery
Supervise sample handling security in the field, in transit and in sampling
Undertake wall logging
Field Logging Sheets

The attached logging sheet (Appendix A) has been designed to conform to the above criteria
and to be compatible with the resource database. In addition a core recovery sheet has been
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designed to reflect the recovery per run (Appendix B).
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An example of a typical entry is shown in the first row of each sheet.
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6. GROUND PENETRATING RADAR
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The Ground Penetrating radar is the one of geophysical survey which applicable and efficient
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to image the nickel ore deposits underground. This technology is able to cover hugh area in
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short time completion, the image feedback could fill the gap between two holes. The dragline
among the ores is clearly identified.
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The proposed survey line in particular grid needs to be established. The drilling grid is the best
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option to be used as survey line. The X,Y,Z of all reading point will automatically recorded by
DGPS.
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7. SURVEYING
Survey work will include surveying of grid line, accurately survey the existing channel
sampling collars, existing test pit walls, roads and selected geological features will be carried
out concurrent with the mapping and drilling programs.
There are two topography methods can be implemented on the project area;
1. Airborne Survey
There are some technique have been developed up to date. This technology is able to
complete the work in big covering area, short time to complete the work and produce accurate
digital terrain model (DTM). The best technique is airborne Laser Scanning and LIDAR. This
technique could reduce error factor caused of vegetation reflection and capable to produce
DTM in 1 meter contour interval.
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2. Ground Topography
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The ground topography work comprises a number of survey control station by DGPS reading,
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a terrain measurement in particular base line and cross line grid on the ground and tie up the
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geological point of observations.
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This technique needs longer time of completion and also requires more people to conduct the
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work.
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The chief surveyor responsible to manage proper equipment, sufficient team members, survey
design, data processing and day to day operation. Prime technical points are;
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Equipment specification and calibration history,

Reference point (nearest BPN or Bakosutranal point),
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Bench mark (in pair) design (at least three pairs),

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Base line, cross line spacing and tagging design,

Loop correction,
Tie the geological observation points such as outcrops, test pits, trenching,
geophysical dipoles and drilling holes,
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Tie the concession boundaries,
DGPS Reading and Topography measurement,

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The survey start the work by Reference point and Bench marks reading by DGPS
(Trimble 4600 LS GPS receiver using is recommended),
Ground base line and cross line tagging measurement by using total station (TC1100
Total Station Leica/Sokia or Top con 230 and prisma).
Raw field data will be processed by using terra model or autocad map software.
The tolerance error is 0.15 m of X value, 0.15 m of Y value and 0.25 m of Z value/km.
The output of this work is Digital Terrain Models (in WGS 84 spheroid projection) sufficient for
resource estimation and commercial technical works in development stage.
For resource estimation purpose, the output topography map should have 1 m to 2.5 m
contour interval,
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For commercial technical work purpose such as cut and fill land clearance-levelling -
pit design ROM stock stock file waste dump settle pond, the output topography
map should have 1 meter contour interval.
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Figure 7.1, Bench mark in pairs, base line and cross line design
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Figure 7.2, Ground tagging of measurement design

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Figure 7.3, Topography Map (Digital Terrain Model)

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Figure 7.4 Total station and Bench mark DGPS reading using Trimble 4600

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Equipment specification capability, calibration history, operator/supervisor resume as well as

reference from the clients need to be enclosed in contractor proposal.
8. SAMPLING
8.1 Sampling Procedure
1. Select the representative and fresh nickel laterite wall on the selected test pit,
2. Determine the type of ore type, orientation, geometry and its distribution,
3. Ensure the proposed surface is free from contamination material (organic or inorganic),
4. Sampling of the pit walls should preferably be done by channel sampling method at
one (1) metre intervals down the vertical profile, except at lithological boundaries.
Samples lengths across this boundary should stay in a range of 1.0 + 0.25m to avoid
excessively short or long samples.
Whole channel sampling will generally be carried out to avoid any bias that could occur
during excavating and lifting of the samples (especially for saprolite) but representative
samples will be split to retain sample for metallurgical sampling or other purposes.
5. Place proper container or plastic just below the proposed channel sampling.
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6. Pack sample (weight 1 kg per sample) in 2 kg plastic bags and complete it with a
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unique sample number.
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NB: one sample number can not be use to two different samples.
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Systematic sampling number
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To write the Point of observation alphabet code in front and number will follow behind.
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Example:
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There are three samples are collected from point of observation number TP01. Then the
sample number is TP01001, TP01002 and so on.
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There are ten samples are collected from BH001. Then the sample number is BH01001,
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BH02002, and so on.

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duplicate sample is considered to send every 20 samples submission. Selected sample will be
collected in two packages one is original and one duplicate in 20 samples.
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8.2 Sample Preparation

Core will be cut into two portions, half is taken and gone to preparation and other half will
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retain.
Sample preparation on site was identified during the process, packaging, submission and
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assaying of the samples.

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Sampling will be carried out on site by SOP which have generated an appropriate sample
preparation house and purchased equipment including a mobile jaw crusher, pulverizer and
drying oven.
The sample preparation procedure is shown in Appendix C.
A strict record of duplicate samples must be kept as per attached Appendix D (sample
submission sheet). These sheets are to be filed and are not to be distributed to the assaying
laboratory.
8.3 Bulk Wet Density Determination

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There are several alternative methods of measuring density, ranging from laboratory tests on
small-scale samples to estimates based on bulk sampling or in situ measure method.
For this program it is proposed to follow the following procedure:
For each pit take three (3) density determinations from limonite and saprolite and one (1)
each from overburden and bedrock respectively. The selection will be subjective, as fewer
measurements will be made from the shallower boreholes.
Use 1cubic meter of representative samples.
Care should be taken, especially in saprolite, not to bias the sample by including
unrepresentative hard rock portions, or vice versa. If in doubt, do not sample.
Weigh carefully first in air.
In situ bulk densities will be measured if mini pits or small shafts are excavated, using
standard geotechnical procedures (Appendix I).
Calculate Bulk density using the following formula:
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Weight in air
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BD = --------------------------------------------
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Volume
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8.4 Bulk Moisture Content Determination
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Moisture content for individual samples will be obtained according to the following method:
Take Individual samples and will be weighed prior to drying, and as soon as possible after
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transport from drilling sites to avoid water loss due to evaporation.

The sample will then be weighed after drying but before sample crushing.
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The formula used for calculating the moisture percentage is:

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Weight of wet sample Weight of dry sample

MC% = ---------------------------------------------------------- x 100
Weight of wet sample
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After sample preparation 75 to150 gm pulp samples will be sent to ITS laboratory in Jakarta
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for analysis. The freighting will be organized under strict supervision of CLIENT field staff.
It is recommended that batches of approximately 250-500 samples be submitted to enable
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consistent assessment of laboratory performance through insertion of standard samples with

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each batch.
Security of samples in respect of consistent numbering and transport supervision is essential.
9. ASSAYING
9.1 Method
Each sample will be analyzed for Ni, Co, Al2O3, SiO2, MgO, Fe2O3, TiO2, MnO, Cr2O3, LOI,
Cu dan Zn.

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Instructions will be given on the standard sample submission sheet (see Appendix E)
The analytical method is as follows:

Ni, Co, Fe, Mg and Al will be assayed by dissolving a 25g charge with a two acid digest
(using hydrochloric and nitric acid), and reading the results by Atomic Absorption
Spectroscopy (AAS).
Si is analysed by a gravimetric process or using a perchloric digest.
9.2 Assay Data Quality Analysis

The objective of quality control of assays is to check the precision of sample preparation,
consistent performance of the laboratory and accuracy of the laboratories analytical results.
This can be achieved as follows:
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Duplicate Samples
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Duplicate samples will total about 5% of all samples (1 in 20) after preparation.
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These samples will be selected subjectively by the Project Geologist to systematically cover
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the full range of lithologies. Each sample will have a unique number, which is different from
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the original and can be selected during the pulp to storage stage of the sample preparation
process (Appendix C).
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For reference purposes all samples submitted for preparation should be accompanied by the
sample submission sheet (Appendix D).
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In this way a check can be made on the field homogenization process as well as a check on
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laboratory analysis.
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Standard Samples
A set of standard (reference) samples was prepared by Intertek Testing Services (ITS) in
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Jakarta. These control samples consist of one high-grade limonite and one low-grade limonite
(blank) taken from well known Test pits Island. They were prepared, homogenized and placed
in approximately 200 separate sample bags (75g each).
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The purpose of standard sampling is to monitor the accuracy of the assay process on a batch-
by-batch basis. For example problems such as a change in instrument calibration or change in
assay protocol can be detected and rectified.
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Check Samples
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Approximately 2% of the total sample reject pulps from the selected laboratory should be sent
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to at least one independent and internationally accredited laboratory. This equates to about 1
in 50 samples.
Samples should be taken across a broad spectrum of lithologies and sent at appropriate times
during the program so a constant check on the laboratorys analyses is maintained.
The recommended laboratory is Ultra Trace in Perth.
Note: Assay results should be transmitted initially in electronic format for ease of transcription
into the database, and finally in signed hard copies, which can be used for verification
purposes.

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10. DATA
10.1 Data Entry
Data entry and database maintenance will be undertaken in the site office on Gag island using
a Microsoft (MS) Access database, under the supervision of qualified geologists.
The contribution of field staff will be as follows:
Pit wall logging sheets (Appendix A)
Sample weight recovery sheets (Appendix B)
Progressive digital copies of density and moisture content measurements.
The database will have Collar, Sample and Survey data tables.
The Collar Data Table will have borehole ID, surveyed collar locations, pit depth and average
sample weigh recoveries (per walls).
The Sample Data Table will have pit wall and sample ID, sample intervals, Ni, Co, Fe, Si, Mg
and Al analyses, density and moisture content measurements, logging information and sample
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weigh recoveries.
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The Survey Data Table will have pi wall ID, depth, azimuth and dip.
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resource estimation software.
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Assay results will be entered (copied) electronically from digital Excel files transmitted by e-
mail from the laboratory on a batch-by-batch basis. Wait until final results have been received
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(for each batch) to avoid copying errors.

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Survey data will also be transferred into the database on a progressive basis.
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10.2 Data Verification

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An internal validation audit carried out by technical staff will include:

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Testing of physical data

Verification to establish that duplicate entries were not made.
Discrepancies or spurious data to be checked against original log sheets or with the
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responsible field geologist.

Approximately 20% of original logs and assay sheets to be checked against the database
for typographical errors.
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Where necessary correct surveying of previous and current drilling

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Correct entry of surface drill hole surveys onto the geological logs and into the data base
Correct entry of sample recoveries into the data base
Remember that major errors can be introduced through incorrect transcription of physical
data.
Testing of analytical data
Sample number verification
Data base entry verification
Quality control (discussed in section 7.2)

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10.3 Data security

The security of samples and the integrity of the database from interference and corruption are
essential. Measures to be considered include:
Supervision of core handling at the drill site
Retaining core and sample rejects in locked storage
Security measures for transportation of core and samples
Laboratory security
Restricted access to electronic and hard data
Computer security
Security of final reports
All files must be backed up weekly onto CD and kept in a secure off-site locality.
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When network facilities are installed files can be backed up regularly onto the designated
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network drive (G).
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11. RESOURCE ESTIMATION
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All exploration staff must be familiar with the basic principles (JORC code of reporting) and
systematic functions of resource estimation.
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Preliminary resource estimation can be done in-house using MicroLynx and/or Gemcom
software and standard polygonal and block modeling methods.
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Interpretation of lithological zones for digitizing will be done by a geologist. In addition

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digitizing of these zones will be supervised and checked by geologists.

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Geostatistic Study
Geostatistic methods take into account the variability in an ore bodys mineralization and can
be used to quantify the uncertainty associated with the resource estimation.
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The study based on the common observation in nickel deposits that samples taken close to
each other are more likely to have similar values than is they are located far apart. The
common and workable method is semivariogram method (krigging method).
The outcome of this study is only the general statistic values such as mean, median, standard
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deviance, coefficient of variant of each single ore physical and geochemistry parameters but
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also can determine the bias value, nugget effect and the distance between the data or data
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spacing that may require upgrading the level of confident of resource statement up to
measured status.

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Figure, semivariogram table
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The level of confident of nickel ore resource estimation is classified as illustration below;
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Terminology
A Mineral Resource is a concentration or occurrence of natural, solid, inorganic or fossilized
organic material in or on the Earths crust in such form and quantity and of such a grade or
quality that it has reasonable prospects for economic extraction. The location, quantity, grade,
geological characteristics and continuity of a Mineral Resource are known, estimated or
interpreted from specific geological evidence and knowledge.
A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or
quality, densities, shape, physical characteristics are so well established that they can be
estimated with confidence sufficient to allow the appropriate application of technical and
economic parameters, to support production planning and evaluation of the economic viability
of the deposit. The estimate is based on detailed and reliable exploration, sampling and
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testing information gathered through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes that are spaced closely enough to confirm both
geological and grade continuity.
An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade
or quality, densities, shape and physical characteristics can be estimated with a level of
confidence sufficient to allow the appropriate application of technical and economic
parameters, to support mine planning and evaluation of the economic viability of the deposit.
The estimate is based on detailed and reliable exploration and testing information gathered
through appropriate techniques from locations such as outcrops, trenches, pits, workings and
drill holes that are spaced closely enough for geological and grade continuity to be reasonably
assumed.
An Inferred Mineral Resource is that part of a Mineral Resource, for which quantity and
grade or quality can be estimated on the basis of geological evidence and limited sampling
and reasonably assumed, but not verified, geological and grade continuity. The estimate is
based on limited information and sampling gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes.
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In technical perspective and previous experience, the workable data spacing in nickel deposit
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can be simply as;
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Limonite In rist ert
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200 meters data spacing and above is classified as inferred
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100 to 200 meters data spacing is classified as indicated
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Less than 100 meters data spacing is classified as measured

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Saprolite
100 meters data spacing and above is classified as inferred
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50 to 100 meters data spacing and above is classified as indicated

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Less than 50 meters data spacing is measured.

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Due to cobalt (Co) has high variability value than Ni, it needs closer data spacing to achieve
measured status.
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Block Model
All the technical inputs data (Bore hole, outcrop, test pit, trenching, geochemistry, GPR and
topography) are compiled and manipulated in block model by Surfac or Microlinx.
G
Y
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12. REPORTING
An annual report reviewing the Geology, Mineralization and Mineral Resources of the project
will be produced with the following suggested Table of Contents and Figures.
TABLE OF CONTENTS
1. Introduction
1.1 Project Description
1.2 Previous Exploration

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2. Tenure
2.1 Historical
2.2 Current Status
3. Geology and Mineralization

3.1 Regional Geology
3.2 Deposit Geology
3.3 Structure
4. Exploration and Evaluation

4.1 Drilling
4.2 Density Measurements
4.3 Assaying
5. Estimation Procedures
5.1 The Data Base
5.2 Topographic Survey
5.3 Geology
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5.4 Vertical Chemical Profiles
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5.5 Rock Distribution
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5.6 Variography
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6. Conclusions and Recommendations
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7. Second year Program and Budget
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8. References
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LIST OF FIGURES
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Figure 1: Locality Map

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Figure 2: Tenure Map

Figure 3: Regional Geological Map
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Figure 4: Deposit Geological Map

Figure 5: Drill Hole Location Map
Figure 6: Topographic Map
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13. HEALTH, SAFETY AND ENVIRONMENTAL COMMUNITY (HSEC)

Details of procedures are to be found in CLIENT Manual of Procedures and Practices in
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Mineral Exploration.
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In addition all exploration staff should be familiar with the CLIENT Code of Conduct Manual
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and CLIENTs Guide to Business Conduct.

Mapping point of observation Sites
At each site all rubbish should be removed. This includes bags, gloves, food wrappers,
water pipes and discarded machine parts
Any ground contaminated by inorganic waste should be dug up and buried.
Field and Regional Office

Key field staff must have done basic First Aid training.

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Compliance with CLIENT accident/incident reporting procedures (forms available in digital

format)
Ensure that all field staffs are properly versed in camp evacuation and emergency
procedures. Written procedures should be strategically placed at all relevant offices and
camps i.e. an approved Emergency Response Plan.
Scheduled (monthly) field camp meetings by the Exploration Manager and Project
Geologist, in particular to check on the maintenance of standards (e.g. first aid kits) and
procedures e.g. the holding of weekly site meetings.
Copies of the CLIENT manual to be kept at field camps.
Reporting of monthly statistics to be done by the Exploration Manager with input from field
camp (project) managers.
Environmental
Compliance with CLIENT environmental standards and procedures in the Jakarta.
Preservation of indigenous vegetation, rehabilitating drill hole and fly campsites, securing
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test pits for safety (even if they were excavated by previous companies). Details are also
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available in the CLIENT manual.
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Respect for Indigenous Cultural Communities and other communities that could be
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affected by the mining and exploration operations.
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Community
Before any fieldwork is carried out, consult with local authorities and community leaders to
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cultivate a working relationship and to obtain necessary agreements stating the principles
of our exploration program, which is to be implemented.
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Employ and train local labour where possible.

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14. SUMMARY OF EXPLORATION PROTOCOL

The following table represents a summary of the exploration activities to be carried out during
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the Exploration program.

ACTIVITY DESCRIPTION
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Mapping Prepare base maps
Field mapping at 1: 5,000 scale

Sitting bore holes
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Use previous sites as reference
Use compass and tape

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Past and present drill sites to be surveyed

Drilling Use man-portable core rigs
Check core recovery at drill site
Log and sample core at the base camp

Sampling Wet density determination
Whole core at + 1m intervals
Bulk moisture content determination
Field sample preparation as per Appendix D.

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ACTIVITY DESCRIPTION
Freight sample pulps Manila laboratory.
Collect reject pulps at appropriate intervals and store at base camp

Assaying To be done for Ni, Co, Fe, Mg, SiO2 and Al (Appendix F)
Send pulps in batches of 250-500
Insert duplicates (5%)
Standards and blanks must be included with each batch
1 in 50 sample pulps sent to independent laboratory for check assaying.

Data Entry Format Access database.
Enter geological, survey and density data from field sheets.
Copy final assay data from McPhars electronic copy.
Data Verification Check for typographical errors.
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Verify sample numbering.
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Data Security Supervise drilling and sampling operations.
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Implement security measures for storage, transportation, laboratory, reports
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and computers.
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Resource Conduct in-house and independent estimations
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Estimation
Reporting Use a standard format
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HSEC Implement proper procedures and controls at drill sites, camps and offices
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Have a clearly marked Emergency Response Plan.

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Ensure that community relations are maintained.

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15. APPENDICES
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14.1 Appendix A: Vertical profile Log Sheet
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DRILL HOLE LOG SHEET ___ of ___

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PROJECT:
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Drill-hole No: Date Started:

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Location: Date Completed:

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Co-ordinate E: Remarks:
Co-ordinate N: Drilling Co.

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Collar elevation: Logged by:
Final Depth
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Sample From To Litholog color wth % Rock Rock Comments

No. y Size

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14.2 Appendix B: Sample weigh Recovery Sheet
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CORE RECOVERY SHEET___ of ___

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PROJECT:
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Drill-hole No: Date Started:

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Location: Date Completed:

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Logged by: Final Depth
Average Recovery
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Core Run Core Length Core % Recovery

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From To Recovered
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14.3 Appendix C: Sample Preparation Procedure
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FIELD SAMPLE PREPARATION

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Primary Core / grab. Perform wet density

Sample (1 2kg) analysis
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(2 3kg)
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ex rig sampler
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14.3
Weigh wet sample
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Oven Drying
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(at 110 C for ~24h) Rock fraction in limonite

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hours zone by sieving (+6) them

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2 Kg
2 Kg
Determine bulk
Weigh dried sample (2kg) moisture content
Crush to 5mm

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Blend and split Store Residue

(1.5 kg)
Pulverize to 80 mesh Pulp to storage Take duplicate

samples (1 in 20)
(0.5 kg) (150 gm)
Pulp to laboratory
(150 gm)
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14.4 Appendix D: Sample Preparation Sheet
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SAMPLE PREPARATION SHEET

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PROJECT:
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BATCH No:
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Hole No Sample Numbers Duplicate Samples Remarks

From To Original No Duplicate No
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14.5 Appendix E: Sample Submission Sheet

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SAMPLE SUBMISSION SHEET

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PROJECT:
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BATCH NO:
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ANALYSIS: Ni, Co, Al2O3, SiO2, MgO, Fe2O3, TiO2, MnO, Cr2O3, LOI, Cu dan
Zn.
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Hole No Sample Numbers Remarks

From To
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14.6 Appendix F: XRF Analytical Method

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Analysis for Ni, Co, Fe, Mg and Al

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Sample to laboratory
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(~150gm)
ex rig sampler
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Pulverize to 200 mesh

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Separate 25gm pulp Store rejected pulp
Deliver reject to Project

Digest with HNO3, HClO4,
HF and HCl.

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Read results for Ni, Co, Fe, Mg and Al by

Atomic Absorption Spectroscopy (AAS)
Record results digitally and

email to QNPH
Analysis for SiO2
Gravimetric process
or Perchloric digest
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14.7 Appendix G: BULK DENSITY TEST

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In laterites (as compared to hard rocks) bulk density measurements are not easy to measure.
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Sometimes only 85% of the core is recovered with some material being washed away by
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drilling fluids and discing.

In addition to this laterites, are also prone to compression and expansion effects. An example
of expansion is in core that can be a confusing 120-130% of the run length! (in some cases the
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reason for the expansion may be partly due to the drilling method as well as physical
properties.
Expansion may occur in a drilling system that has a drill throat larger than the sample barrel,
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hence more length of sample appears in the sample chamber than is actually being drilled.
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Other errors related to the length of the core are probably due to the core snapping off at the
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end of a run and being incorporated into the beginning of the next run. If this is the case there
may not be any real expansion or compression effect.
If the expansion or compression effect can be measured some rough density measurements can
be made in the field using the following immersion method;
Density measurements need to be performed every hole for ore bearing lithologies, and if
possible for overburden and basement lithologies also whenever possible. Measurements
should be performed on whole core as this is less likely to let water in.
Ideally, it is at least 2 or more density measurements per hole.
Required are;
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At least 4-5kg (60-70cm) of un-split core (use about 30-60 cm from a 100 cm long
sample).
Battery powered Balance (AA batteries are often easiest),
Level bubble
Bucket of water (with specially cut hole near the top shaped like
an inverted tear drop; having narrow V at the bottom-
meniscus, wider at the top),
Bottles of water.
A dry plastic bag to place on the balance to protect it
A wet plastic bag with holes in it to sit in the water
The density recording table (0_DensityTable.xls).
About 2-3 minutes of time per sample
We shall first weigh the sample, then measure the displacement of water by the sample. To do
this follow these instructions (see also photo 1 and table 1);
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1. Place the scale on a flat place and make sure it is level (use a level bubble).
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2. Zero the scale while a plastic bag is on the tray (to protect and keep the tray clean)
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3. Take about 3-4Kg of sample (about 60 cm of whole unsplit core)
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and weigh on the balance. Record the sample number, lithology and weight
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on the attached table (table 1).
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4. Place the wet plastic bag (with the holes in it) into the bucket and half fill the bucket with
water.
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5. Put the weighed sample into the wet plastic bag in the bucket, and top up the bucket with
water. THE SAMPLE MUST BE ENTIRELY UNDERWATER WHEN
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THE BUCKET IS
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FULL TO THE V-HOLE OTHERWISE THE RESULTS ARE INVALID. Top up the water
until the meniscus just touches the hole in the bucket. Test this by touching the outside of
the bucket with your finger over the hole until the meniscus just touches your finger. Keep
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an eye out for bubbles coming from the sample (this would mean we are losing air, and
gaining water and would make your results inaccurate. If only a few small bubbles it
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should not be a problem). Do not leave the sample in the water for more than a minute as
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it may start to crumble and fall apart. Be as quick as you can.

6. You have now displaced the water with the volume of sample.
7. Very carefully pull the plastic bag and sample from the bucket and avoid spilling any drop
of water. Once removed, return the wet plastic bag to the bucket in the same position that
it was when you started. (Are there any rocks in the bag? Take them out. Are there any
bubbles in the bag?, squeeze them out).
8. Now you need to measure how much water was displaced. Place two full bottles of water
on the balance, hit zero (Tare), remove the bottle from the scales (the scale should read
about 3000 gm if you used 3 litres), leave the balance switched on and pour the water
carefully into the bucket, as for Step 5, testing when it is full. If the bottles should become
empty place it back on the balance and record the weight in grams of water. Repeat step
8 until bucket is full and meniscus touches the v-hole. Add the two water measurements
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together to get the total displacement, record results. 1 gm of water= 1ml of water at room
temperature= 1cm3. Set aside the sample to dry in the sun (to get the excess water off
the outside of the sample). When it is dry on the outside split the core into Sample A and B
and log it. Save oneof the splits for measuring moisture content.(see later)*
9. Congratulations you have completed the field measurements.
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Photo 1. Showing set up with bucket, core, plastic weighing bag with holes and balance with
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water bottles . San Felipe Mining , Cuba. Aug 1999.

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Table 1. Field record of wet mass and mass of water displaced for wet density calculations
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Hole Samp. Lith Mass gms of water Wet Bulk Density (= Comments Date
No. (gm) displaced sample mass /
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(gm=ml=cm3) mass water)

Mass air /
gms of water =
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N44E33 642350 LimClay 3500 2200 3500 / 2200= 1.591 11/10/00

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The wet bulk density of the core can then be calculated by using the formula;
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Density= mass/ volume

eg., = 3500gm/2200cm3= 1.591 gm/cm3
mass is the core mass in air in grams
volume is the amount of water displaced in grams.
Once the amount of moisture is known for the sample a rough dry density of the core may
be calculated.
Moisture content estimate

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Water content divided by wet mass (in grams) expressed as a percentage of the original wet
mass (some people express it as a percentage of the original dry mass, be sure to check
what method is used).
Moisture content % = (Wet Mass-Dry Mass)

Wet Mass
The dry mass is after a sample has been dried to a constant mass at 105 C (this may take
24-48 hours). It is very important a constant mass be reached otherwise the sample is not
completely dry and the moisture content will be incorrect.
See table 2 for an example of the %water (on a wet basis).
Bulk Density
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Bulk density is expressed as mass/volume;
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Mass gms
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Volume cm3
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Density can be expressed as wet or dry bulk density.;
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The wet bulk density is ;

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Mass of wet sample (gms)

Volume in cm3
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The dry bulk density* is;

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Mass Dry Rock gms

Volume in cm3
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If we do not know the dry mass of the rock that gave a certain volume when measured (as we
only used 60cm of core in the volume measurements in Step3, whereas in the moisture
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content estimate the entire core may have been used).

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Knowing the original wet bulk density and the moisture content we can estimate the dry bulk
density, assuming that the dry rock volume is equal to the wet rock volume.
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If we use a water content expressed as a % of the wet mass then following equation can be
applied;
Dry Density= Wet Bulk Density * (1- (Moisture% wet%)/100))
Where % Water dry is expressed as a decimal eg. 23%= 0.23

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Water wet%= (Wet Mass-Dry Mass)

Wet Mass
Table 2. Dry density calculations*. (assuming dry volume=wet volume)

A B C D E F G H
= ( D + E ) /B = A -D = E /( E + D ) = (C *(1 -F )) = D /B
D r y d e n s it y D r y d e n s ity
t h e o r y if th e o r y if
W et W e t B u lk M o is t u r e % m o is t u r e m a s s n o t m ass not
W e t M a s s V o lu m e d e n s ity D ry M a s s ( m l) w e t b a s is know know
3500 2200 1 .5 9 1 2200 1300 3 7 .1 % 1 .0 0 0 1 .0 0 0
2520 1800 1 .4 0 0 2300 220 8 .7 % 1 .2 7 8 1 .2 7 8
2540 1800 1 .4 1 1 2255 285 1 1 .2 % 1 .2 5 3 1 .2 5 3
2480 1800 1 .3 7 8 2033 447 1 8 .0 % 1 .1 2 9 1 .1 2 9
2420 1800 1 .3 4 4 1967 453 1 8 .7 % 1 .0 9 3 1 .0 9 3
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1 .3 8 9 2000 1 .1 1 1
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2500 1800 500 2 0 .0 % 1 .1 1 1
2400 1800 1 .3 3 3 1900 500 2 0 .8 % 1 .0 5 6 1 .0 5 6
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1 .1 1 1 1400 0 .7 7 8
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2000 1800 600 3 0 .0 % 0 .7 7 8
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2880 1813 1 .5 8 9 1988 892 3 1 .0 % 1 .0 9 7 1 .0 9 7
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2980 1818 1 .6 3 9 1799 1181 3 9 .6 % 0 .9 9 0 0 .9 9 0
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Recommendations
ns ind tua
The above bulk density measurement method is likely to be quite rough ( 15%). However
ko ul ec
if 2 or more samples are able to be obtained per hole then it is possible to plot histograms
eo f Y tel
of the density to see if a standard distribution is given for each lithology and for varying
humidity results.
In
To run comparisons it is suggested to;

compare density measurements taken from test pits
o
compare density measurements taken from mini mining pits or costeans

Perhaps some sort of correction factor between the test pits and mini mining pits might be able
G
to be calculated for the different lithologies and applied.

Y
D
GEOTECHNICAL
Geotechnical activities will be carried out during the Feasibility Study.
While it is envisioned that a geotechnical program will be conducted by an independent
geotechnical consulting contractor, it is essential that the geologist be acquainted with
guidelines/procedures related to the geotechnical activities. The geologist may be needed to
assist in the performance of these activities and at the same time he has to check/validate the
consultant's work.
It should be noted that the designated geotechnical consultant will prepare the final
geotechnical program, in coordination with client

Protocolv2
Geotechnical activities that would require standards include:

Geotechnical site investigations - with particular reference on soil and rock description
during geotechnical logging.
Geotechnical drilling - with emphasis on drilling and sampling equipment, standard
penetration tests (SPT), piezometers, etc.
Geotechnical testing - determination of the field density of a soil by the sand-cone
method.
The following guideline should be followed for the Project.

Geotechnical Site Investigation
This procedure describes the basic system used in describing soil arid rock during
geotechnical logging and is fully documented in a report for the Feasibility Study purpose.
The terms used in this procedure are consistent with the Australian Standard for geotechnical
y
site investigations (AS1726-1993).
nl
O
It is important that this procedure be discussed thoroughly with the drilling contractor prior to
te ia y
al an
In rist ert
commencement of activity. Sampling of required samples at designated depths is essential
se
otherwise re-drilling would be necessary, which is costly and time consuming.
rn w
do h op
U
Planning and execution of geotechnical drilling program must be done in close coordination
between company, the geotechnical consultant and drilling contractor.
in C r
ul ra l P
ns ind tua
Geotechnical Testing
Determination of field density of soils by the sand-replacement method using a sand-cone
ko ul ec
pouring apparatus is given on the standard -AS1289.5.3.1 -1993.

eo f Y tel
While the mini-pit program has not been finalized yet, it is essential that familiarity with these
In
field density determination procedures be understood. Results of field tests using this
technique gave a good correlation with core density tests.
G o
Y
D

Protocolv2

Nickel Comprehensive Exploration Protocol

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Nickel Comprehensive Exploration Protocol

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COMPREHENSIVE EXPLORATION PROTOCOL

FOR NICKEL DEPOSIT

GEOLOGY AND MINERAL RESOURCES

13. HEALTH, SAFETY AND ENVIRONMENTAL COMMUNITY (HSEC) .......................... 28

15. APPENDICES ............................................................................................................. 31

14.1 Appendix A: Vertical profile Log Sheet ..................................................................... 31

14.2 Appendix B: Sample weigh Recovery Sheet ............................................................ 32

14.5 Appendix E: Sample Submission Sheet ................................................................... 35

14.7 Appendix G: BULK DENSITY TEST ........................................................................ 37

Nickel Comprehensive Exploration 2/13

23) as well as NI 43 verse 101.

Is always done by a geologist.

Is used to create digital base maps.

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3.1 Base Map

3.2 Geological Mapping

windows/gullies, road-cuttings and trails should be mapped.

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Saprolite (gritty clay with <10% boulders of weathered 4

Rocky saprolite (with 10 to 50% boulders of weathered

Structure outcrops description:

This procedure is also valid for test pitting or trenching work.

3.3 Map Standards

Nickel Comprehensive Exploration 5/13

Rock Type/ Mineralogy Symbol Colour

Serpentinite Colour (black, green

Laterite zone Yellow

Breccia Differentiate weathering

weathering of the clash

in centre of clash and

to record colour and

(vuggy, massive, comb

Nickel Comprehensive Exploration 6/13

Rock contain percentage

< 40% rock,

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The out put

Figure 3.1 Geological map

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Table 4.1, Daily pre start check list

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Coordinate in UTM (WGS 84): (X,Y,Z)

Determining drilling depth is below;

Figure 4.1, determine a drilling depth

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The run meter and core recovery shall be recorded accurately.

Nickel Converhensive Exploration 11/13

Table 4.2, Run Recovery table

Nickel Converhensive Exploration 12/13

Core Logging Codes

Nickel Converhensive Exploration 13/13

Symbols Description Weath

organic or drilling mud),

3. Shoot the camera on the core,

Nickel Converhensive Exploration 14/13

Figure4.3, Core Handling

Then the sample number is BH01001, BH02002 and so on.

interpretation is from neighbour hole.

Wall Logging Codes

Nickel Converhensive Exploration 15/13

Symbols Description Wth

3 >50cm (will be left in the pit)

3 Pink / brown / green

Nickel Converhensive Exploration 16/13